It comes as billionaire Berkshire Hathaway chairman and CEO Warren Buffett today painted a happier picture of stocks, which he said are relatively cheap compared to other investments as the economy improves.

Meanwhile contracts to buy previously owned U.S. homes neared a two-year high in January in further evidence the housing market was slowly turning the corner, an industry group said today.

However oil prices have been spurred higher by worries over disruptions to Middle East supplies due to sanctions against Iran and expectations for greater demand from an improving U.S. economy.

But on the markets, the S&P 500 has risen nearly nine per cent so far this year and the Dow Jones is trading around the psychologically-important mark of 13,000. But the three experts aren’t happy.

Mr Prechter told USA Today both markets will crash back below their lows hit at the height of the financial crisis in March 2009. Unemployment fell last month to 8.3 per cent, a three-year low, and weekly jobless claims are at a four-year-low.

But Mr Dent believes that people will be left out of work again in 2013 or 2014 and U.S. markets will crash because central banks have been pumping so much money into markets that they are unrealistically strong.

The economy is proving to be the major issue in this autumn’s presidential election, with every Republican candidate berating President Barack Obama for his handling of the recession.

Mitt Romney said on Monday that his major rival Rick Santorum is ill-prepared to deal with the nation's economic woes, calling his GOP rival a nice guy who never held a job in the private sector.

But Mr Santorum has mounted an unexpectedly strong challenge against Mr Romney ahead of the primary in Michigan tomorrow, despite accusations from his rival that he doesn't know how to create jobs.

Mr Celente told USA Today that a higher unemployment rate will cause social unrest and there will be a growing rich-poor divide. This would no doubt help fuel movements such as Occupy Wall Street.

‘When money stops flowing to the man on the street, blood starts flowing in the street,’ he said.